73R11027 E
          By Sims                                                S.B. No. 964
          Substitute the following for S.B. No. 964:
          By Earley                                          C.S.S.B. No. 964
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the location, survey, sale, and lease of vacant and
    1-3  unsurveyed public school land and certain public boundaries and
    1-4  related fees.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter E, Chapter 51, Natural Resources Code,
    1-7  is amended to read as follows:
    1-8              SUBCHAPTER E.  SALE AND LEASE OF VACANCIES
    1-9        Sec. 51.171.  SALE AND LEASE OF VACANT LAND.  (a)  Vacant and
   1-10  unsurveyed public school land shall be located, sold, and leased
   1-11  under this subchapter, except:
   1-12              (1)  submerged lands within tidewater limits;
   1-13              (2)  all islands, flats, and emergent lands within
   1-14  tidewater limits;
   1-15              (3)  natural lakes; and
   1-16              (4)  riverbeds, including channels and islands in
   1-17  riverbeds, above tidewater limits.
   1-18        (b)  This subchapter does not alter or diminish the public
   1-19  domain status of the surface estate of riverbeds and channels and
   1-20  islands in riverbeds that are located above tidewater limits.
   1-21        Sec. 51.172.  DEFINITIONS.  In this subchapter:
   1-22              (1)  "Applicant" means any person who files an
   1-23  application.  The term may include a good-faith claimant.
   1-24              (2)  "Application" means an application to purchase or
    2-1  lease a vacancy under this subchapter.
    2-2              (3)  "Good-faith claimant" means a person who:
    2-3                    (A)  occupies or uses or whose predecessors in
    2-4  interest have occupied or used a vacancy for purposes other than
    2-5  exploring for or removing or purporting to lease or otherwise
    2-6  convey oil, gas, sulphur, other minerals, or geothermal resources
    2-7  from the vacancy;
    2-8                    (B)  has had, or whose predecessors in interest
    2-9  have had, the vacancy enclosed or within definite recognized
   2-10  boundaries and in possession for a period of 10 or more years with
   2-11  a good-faith belief that the vacancy was included within the
   2-12  boundaries of a survey or surveys that were previously titled,
   2-13  awarded, or sold under circumstances that would have vested title
   2-14  in the vacancy if it were actually located within the boundaries of
   2-15  the survey or surveys;
   2-16                    (C)  is the owner of land adjoining a vacancy on
   2-17  which no application has previously been filed; or
   2-18                    (D)  holds under a good-faith claimant or is
   2-19  entitled to a distributive share of any title acquired under an
   2-20  application made by a good-faith claimant.
   2-21              (4)  "Interest" means any right or title in or to real
   2-22  property, whether affecting the surface, subsurface, or mineral
   2-23  estate, including:
   2-24                    (A)  fee simple title;
   2-25                    (B)  a determinable fee created under a mineral
   2-26  lease or conveyance or otherwise;
   2-27                    (C)  a royalty, nonparticipating royalty, or
    3-1  overriding royalty interest;
    3-2                    (D)  a remainder or reversionary interest; or
    3-3                    (E)  an interest arising under a lien.
    3-4              (5)  "Interested person" means:
    3-5                    (A)  a person who may own or who claims any
    3-6  interest in land claimed to be vacant or in any land adjoining or
    3-7  overlapping that land as determined from the records of the land
    3-8  office, the records of the county clerk's office, and the tax
    3-9  records of the county or counties in which the land claimed to be
   3-10  vacant is located;
   3-11                    (B)  any other person who asserts a right to or
   3-12  interest in the land claimed to be vacant and who is known to the
   3-13  applicant or whose identity could be ascertained by the applicant
   3-14  with the exercise of reasonable diligence;
   3-15                    (C)  the attorney general; or
   3-16                    (D)  the applicant.
   3-17              (6)  "Vacancy" means an area of unsurveyed public
   3-18  school land that:
   3-19                    (A)  is not in conflict on the ground with land
   3-20  previously titled, awarded, or sold;
   3-21                    (B)  has not been listed on the records of the
   3-22  land office as public school land; and
   3-23                    (C)  was not, on the date of filing of an
   3-24  application:
   3-25                          (i)  subject to an earlier subsisting
   3-26  application by an applicant or good-faith claimant; or
   3-27                          (ii)  the subject of pending litigation
    4-1  brought by the state to recover the land.
    4-2        Sec. 51.173.  APPLICATION.  (a)  To purchase or lease a
    4-3  vacancy, a person must file an application.  The filing of an
    4-4  application commences a proceeding under this subchapter.  The
    4-5  applicant must file the application with the county surveyor of the
    4-6  county in which all or part of the land claimed to be vacant is
    4-7  located.  If the county does not have a county surveyor, the
    4-8  application must be filed with the county clerk.
    4-9        (b)  The application must:
   4-10              (1)  describe the land that is claimed to be vacant;
   4-11              (2)  state whether the applicant is a good-faith
   4-12  claimant;
   4-13              (3)  state whether the applicant seeks to purchase the
   4-14  vacancy or obtain a mineral lease on the vacancy;
   4-15              (4)  state the name and last known address of all
   4-16  interested persons; and
   4-17              (5)  provide any other information that the
   4-18  commissioner requires by rule.
   4-19        (c)  The commissioner by rule shall set an application filing
   4-20  fee in an amount of not less than $5.  The applicant shall pay the
   4-21  filing fee to the county surveyor or county clerk at the time the
   4-22  application is filed.
   4-23        (d)  The county surveyor or county clerk shall mark the exact
   4-24  date and hour of filing on the original and a duplicate copy of the
   4-25  application and shall return a marked copy to the person filing the
   4-26  application.  The original shall be recorded in a book kept for
   4-27  that purpose separate from the deed or real property records.
    5-1        (e)  Priority among applications covering the same land
    5-2  claimed to be vacant is determined by the time of filing indicated
    5-3  by the date and hour marked on the application by the county
    5-4  surveyor or county clerk.
    5-5        Sec. 51.174.  FILING APPLICATION WITH COMMISSIONER.  (a)  The
    5-6  applicant shall file with the commissioner a copy of the
    5-7  application with the county surveyor's or clerk's mark indicating
    5-8  the time of filing not later than the 10th day after the
    5-9  application is filed with the county surveyor or clerk.  The
   5-10  applicant shall include a filing fee set by the commissioner in an
   5-11  amount of not less than $100.  If the 10th day after filing falls
   5-12  on a Saturday, Sunday, or state or federal holiday, the application
   5-13  may be filed on the next regular business day following the 10th
   5-14  day.
   5-15        (b)  The commissioner shall mark the date of filing on the
   5-16  application and assign a file number to the application.
   5-17        (c)  An applicant who does not file the application with the
   5-18  commissioner in the time provided in this section or pay the filing
   5-19  fee waives all rights under the application.
   5-20        (d)  The commissioner may refuse to accept for filing an
   5-21  application that:
   5-22              (1)  has material omissions;
   5-23              (2)  does not describe the land claimed to be vacant
   5-24  adequately for the land to be located on the ground; or
   5-25              (3)  describes as vacant land that has been finally
   5-26  adjudicated in a court of this state or of the United States not to
   5-27  be vacant.
    6-1        Sec. 51.175.  DEPOSIT.  (a)  If an applicant is not a
    6-2  good-faith claimant, the commissioner shall estimate the costs of
    6-3  proceeding under the application, including the costs of a survey
    6-4  made by a licensed state land surveyor or the county surveyor, the
    6-5  preparation of copies and working sketches by the land office, the
    6-6  mailing or publication of notices and copies, and other similar
    6-7  costs, excluding allocable costs of salaries and overhead expended
    6-8  by the land office in actually conducting a hearing or preparing
    6-9  orders and proposals for decision.
   6-10        (b)  The commissioner shall notify the applicant in writing
   6-11  of the estimated costs and the applicant shall make a deposit with
   6-12  the commissioner in the amount of the estimated costs.
   6-13        (c)  If at any time the commissioner determines that the
   6-14  funds on deposit are insufficient to pay the costs of the
   6-15  proceeding, the commissioner shall estimate the additional amount
   6-16  required and shall notify the applicant in writing to make a
   6-17  supplemental deposit of the estimated amount.  The notice must be
   6-18  dated.
   6-19        (d)  The applicant shall make an initial deposit or a
   6-20  supplemental deposit not later than the 30th day after the date of
   6-21  the written notice to make the deposit.  The commissioner shall
   6-22  cancel the application if the applicant does not make a required
   6-23  deposit within the prescribed time.  Cancellation terminates all
   6-24  rights under that application.
   6-25        Sec. 51.176.  APPEAL OF AMOUNT OF DEPOSIT.  (a)  An applicant
   6-26  may appeal the amount of an initial deposit or supplemental deposit
   6-27  determined by the commissioner in the manner provided for the
    7-1  appeal of agency decisions under the Administrative Procedure and
    7-2  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
    7-3  Statutes).
    7-4        (b)  If the applicant does not pay the amount determined by
    7-5  the district court on or before the 15th day after the judgment of
    7-6  the district court becomes final and nonappealable, the
    7-7  commissioner shall cancel the application.  Cancellation terminates
    7-8  all rights under that application.
    7-9        Sec. 51.177.  DISPOSITION OF DEPOSITS.  (a)  The commissioner
   7-10  shall deposit all initial and supplemental deposits received under
   7-11  this subchapter to the credit of a separate trust account in the
   7-12  treasury.  The treasurer, on the commissioner's order, shall make
   7-13  disbursements from that account for purposes authorized by this
   7-14  subchapter.
   7-15        (b)  After proceedings on an application are concluded and
   7-16  all expenditures authorized under this subchapter are paid, the
   7-17  commissioner shall provide the applicant a complete statement of
   7-18  all deposits and expenditures and shall remit to the applicant any
   7-19  balance remaining from the deposit or supplemental deposits made by
   7-20  the applicant.
   7-21        Sec. 51.178.  APPOINTMENT OF SURVEYOR.  (a)  Not later than
   7-22  the 60th day after the date on which the required deposit is paid,
   7-23  the commissioner shall appoint a licensed state land surveyor or
   7-24  the county surveyor of the county in which all or a part of the
   7-25  land claimed to be vacant is located to make a survey of that land.
   7-26        (b)  The fees and expenses paid for the survey are those
   7-27  provided by law.  If the fees and expenses are not provided by law,
    8-1  the commissioner and surveyor shall make an agreement as to the
    8-2  fees and expenses reasonable for the work to be performed.
    8-3        (c)  The fees and expenses shall be paid by the applicant and
    8-4  may be paid from the initial deposit or any supplementary deposits
    8-5  made by the applicant under this subchapter.
    8-6        (d)  The commissioner shall promulgate rules setting out the
    8-7  qualifications and method of selection of surveyors appointed
    8-8  pursuant to this section.  The rules shall provide the greatest
    8-9  practicable opportunity for all qualified surveyors to obtain
   8-10  appointment and shall provide the opportunity for an interested
   8-11  party to move for the removal of an appointed surveyor on the
   8-12  grounds of bias, prejudice, or conflict of interest.  No surveyor
   8-13  appointed shall be removed, however, except upon notice to the
   8-14  surveyor and all interested parties and hearing.  The fact of
   8-15  removal of a surveyor shall not be a basis for any disciplinary
   8-16  action against that surveyor under the Professional Land Surveying
   8-17  Practices Act (Article 5282c, Vernon's Texas Civil Statutes).
   8-18        Sec. 51.179.  NOTICE TO INTERESTED PERSONS.  (a)  Not later
   8-19  than the 10th day after the date on which the commissioner appoints
   8-20  the surveyor, the commissioner shall give notice by certified mail,
   8-21  return receipt requested, to all interested persons at the last
   8-22  known address.  The notice shall contain:
   8-23              (1)  the date of the notice;
   8-24              (2)  a statement that a vacancy application has been
   8-25  made;
   8-26              (3)  the name, address, and telephone number of the
   8-27  surveyor appointed to make the survey;
    9-1              (4)  a statement that the survey may begin any time
    9-2  after the 20th day after the date of the notice;
    9-3              (5)  a statement that an interested party is entitled
    9-4  to:
    9-5                    (A)  observe the conduct of the survey;
    9-6                    (B)  receive a copy of the final survey report
    9-7  and other documents filed by the surveyor; and
    9-8                    (C)  participate in the vacancy proceeding;
    9-9              (6)  a true and legible copy of the application; and
   9-10              (7)  other information the commissioner by rule may
   9-11  prescribe.
   9-12        (b)  If the location of an interested person is unknown or if
   9-13  a notice is returned as unclaimed or undeliverable, the
   9-14  commissioner shall publish notice as prescribed by the Texas Rules
   9-15  of Civil Procedure.  If notice by publication is made, the survey
   9-16  may not begin and further proceedings may not be held until the
   9-17  30th day after publication is completed.
   9-18        (c)  If the applicant, another interested person, or the
   9-19  surveyor shows that the delay required by Subsection (b) of this
   9-20  section may materially affect the accuracy of the survey because of
   9-21  destruction, alteration, or removal of natural features, monuments,
   9-22  or witness objects, or for other good cause, the commissioner may
   9-23  order the survey to proceed.  Notice of the request to proceed with
   9-24  the survey and of any order issued in response to the request shall
   9-25  be mailed first class to all interested persons.
   9-26        (d)  The right of an interested person, personally or through
   9-27  a representative or representatives, to observe the conduct of a
   10-1  survey made under this subchapter does not require a delay in the
   10-2  conduct of a survey solely to allow an interested person or that
   10-3  person's representative to be present during the survey.
   10-4        Sec. 51.180.  WAIVER OF NOTICE.  (a)  An interested person
   10-5  may waive service of the notice required by Section 51.179 of this
   10-6  code by filing with the commissioner a sworn affidavit stating the
   10-7  person's intent to waive notice.  The affidavit shall state that
   10-8  the person executing the waiver has been provided with a true copy
   10-9  of the application filed with the commissioner.
  10-10        (b)  The affidavit may also state clearly the interested
  10-11  person's intent to waive all further notice of the vacancy
  10-12  proceedings.  If the affidavit states this intent, it must also
  10-13  state prominently and clearly that the interested person is aware
  10-14  that waiving the right to further notice may result in the loss of
  10-15  the opportunity to appear and to contest the application.
  10-16        (c)  The commissioner by rule may prescribe the form and
  10-17  specific content of the affidavit described in this section,
  10-18  including additional information to be included.
  10-19        Sec. 51.181.  SURVEY.  (a)  Except when notice by publication
  10-20  is required, at any time after the 20th day after the date of the
  10-21  notice required by Section 51.179(a) of this code, the surveyor
  10-22  shall begin the survey of the land claimed to be vacant.
  10-23        (b)  The surveyor shall prepare and file in the land office:
  10-24              (1)  a detailed written report of all aspects of the
  10-25  survey, including record research conducted, survey corners
  10-26  recovered in the course of the field survey, and details of
  10-27  boundary construction using recovered corners;
   11-1              (2)  field notes in the form and content prescribed by
   11-2  law, describing the land and the lines and corners surveyed;
   11-3              (3)  a complete plat depicting in detail the survey
   11-4  results;
   11-5              (4)  the names and addresses of all persons who have
   11-6  possession of the land described in the application and a
   11-7  description of the lands occupied by those persons; and
   11-8              (5)  the names and addresses of all persons known to
   11-9  the surveyor who have or claim any interest in the land.
  11-10        (c)  The surveyor shall file the report required by this
  11-11  section not later than the 140th day after the date of the notice
  11-12  required by Section 51.179(a) of this code.  If notice by
  11-13  publication is required and the commissioner has not ordered the
  11-14  survey to proceed, the surveyor shall file the report not later
  11-15  than the 170th day after the date on which notice by publication is
  11-16  completed.  If the commissioner has ordered the survey to proceed,
  11-17  the surveyor shall file the report not later than the 140th day
  11-18  after the date of the commissioner's order.
  11-19        (d)  For good cause shown, the commissioner by written order
  11-20  may extend the time for filing the survey.  The order shall state
  11-21  the cause for the extension and shall be included in the record.  A
  11-22  single order may not extend the time for filing by more than 60
  11-23  days.
  11-24        (e)  An interested person at the person's own expense may
  11-25  have any surveying done that the person considers desirable, but a
  11-26  survey report, a plat, or field notes based on a survey made by a
  11-27  person not qualified by law to survey public lands in this state
   12-1  may not be admitted into evidence in a vacancy proceeding or filed
   12-2  in the land office.
   12-3        (f)  The commissioner shall serve a true copy of the survey
   12-4  report, field notes, plat, and all other documents filed by the
   12-5  surveyor on each interested person, including those named in the
   12-6  survey report, by certified mail, return receipt requested, not
   12-7  later than the fifth business day after the survey report is filed
   12-8  in the land office.
   12-9        Sec. 51.182.  ADDITIONAL INTERESTED PERSONS.  (a)  All
  12-10  persons named in the survey report as occupying or as having or
  12-11  claiming any interest in the land described in the application
  12-12  shall be included in the proceeding as interested persons and shall
  12-13  be provided notice as prescribed by this subchapter.
  12-14        (b)  An application may not be canceled or a proceeding
  12-15  terminated because of the discovery of an additional interested
  12-16  person unless the commissioner finds that the person filing the
  12-17  application knowingly and intentionally omitted the name of the
  12-18  person from the application.
  12-19        Sec. 51.183.  EXCEPTIONS.  An interested person may file
  12-20  exceptions to the survey report, field notes, and plat not later
  12-21  than the 30th day after the date the survey report is filed in the
  12-22  land office.  A person filing exceptions shall serve a true copy on
  12-23  all interested persons and on the surveyor by certified mail,
  12-24  return receipt requested.  The exceptions shall include a
  12-25  certificate of the fact of that service.
  12-26        Sec. 51.184.  ADDITIONAL SURVEYS.  (a)  The commissioner or
  12-27  the land office staff may consult with the surveyor.  The
   13-1  commissioner, after notice to the interested persons, may direct
   13-2  the surveyor to make additional surveys, to investigate as the
   13-3  commissioner considers necessary, and to prepare supplemental
   13-4  reports, plats, and field notes the commissioner requires.
   13-5        (b)  The commissioner shall provide copies of all reports,
   13-6  plats, field notes, and other information resulting from additional
   13-7  surveys and investigation to all interested persons.
   13-8        (c)  An interested person may file exceptions or other
   13-9  responses not later than the 20th day after the surveyor files the
  13-10  required documents with the land office.
  13-11        (d)  Service of additional documents and exceptions or
  13-12  responses to those documents shall be made as provided by Sections
  13-13  51.181 and 51.183 of this code.
  13-14        Sec. 51.185.  ACTION ON APPLICATION.  (a)  Not later than the
  13-15  90th day after the date on which the surveyor files the survey
  13-16  report and other documents required to be filed, the commissioner
  13-17  shall either deny the application as provided by Section 51.186 of
  13-18  this code or hold a hearing to determine whether a vacancy exists.
  13-19        (b)  Except as provided by Section 51.192 of this code, the
  13-20  commissioner may not find that a vacancy exists unless a hearing is
  13-21  held.
  13-22        (c)  The commissioner shall decide all issues raised or that
  13-23  could be raised by the application and any exceptions or responses
  13-24  to the application, including the existence of a vacancy, the
  13-25  boundaries of a vacancy, and the status and rights of any
  13-26  interested person as a good-faith claimant or prior applicant.
  13-27        (d)  The commissioner may not decide in a proceeding on an
   14-1  application any claim of the state or permanent school fund for
   14-2  damages arising from trespass, the removal or use of minerals or
   14-3  geothermal resources, mispayment of proceeds from the sale or use
   14-4  of minerals or geothermal resources, damages to the soil,
   14-5  vegetation, or other life or habitat, and similar or related
   14-6  claims.  Those claims may be asserted by the commissioner in
   14-7  administrative proceedings under rules adopted by the commissioner
   14-8  or through suit brought by the attorney general at the request of
   14-9  the commissioner.
  14-10        (e)  Evidence or testimony regarding the existence or extent
  14-11  of mineral development or other economic use of land claimed to be
  14-12  vacant may not be introduced or considered, unless that evidence or
  14-13  testimony is relevant to determine the existence or boundaries of
  14-14  the alleged vacancy or the status of a person as a good-faith
  14-15  claimant.
  14-16        Sec. 51.186.  DENIAL OF APPLICATION.  (a)  If, after
  14-17  reviewing the survey report, any supplemental reports, any
  14-18  exceptions to the reports, all pertinent publicly available records
  14-19  of the land office and the state archives, and land office staff
  14-20  recommendations, the commissioner decides that the land claimed to
  14-21  be vacant is not vacant, the commissioner may enter an order
  14-22  denying the application.  The order shall contain findings of fact,
  14-23  conclusions of law, and other matters the commissioner considers
  14-24  appropriate.
  14-25        (b)  The commissioner shall promptly send a true copy of the
  14-26  order denying the application to the applicant by certified mail,
  14-27  return receipt requested.
   15-1        (c)  The commissioner shall place in the file assigned to the
   15-2  application the original order, all materials filed by the
   15-3  surveyor, all exceptions and responses to the surveyor's filings,
   15-4  all memoranda provided to the commissioner by the land office
   15-5  staff, a list of all files and records of the land office and state
   15-6  archives examined by the staff or commissioner in connection with
   15-7  the application, and all other relevant papers.
   15-8        (d)  An interested person may request a rehearing and appeal
   15-9  the commissioner's order as provided by the Administrative
  15-10  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  15-11  Civil Statutes) and by rules adopted by the commissioner consistent
  15-12  with that Act.  If a rehearing is not requested, the order becomes
  15-13  final on the 30th day after the date it is signed.  If a rehearing
  15-14  is requested and denied, the order becomes final on the date that
  15-15  time for appeal to the district court expires.  If appeal is taken,
  15-16  the order becomes final on the date that a judgment disposing of
  15-17  the order becomes final.
  15-18        (e)  When the commissioner's order denying the vacancy is
  15-19  final, all rights under the application are terminated.
  15-20        Sec. 51.187.  EFFECT OF FINAL ORDER.  (a)  A final order of
  15-21  the commissioner under this subchapter is conclusive with respect
  15-22  to the land described in the application or final order.  A final
  15-23  order of the commissioner does not have the effect of stare decisis
  15-24  with respect to land not described in the application or final
  15-25  order, but may be considered with all other evidence.
  15-26        (b)  The cancellation, withdrawal, abandonment, or
  15-27  termination of an application, the refusal of the commissioner to
   16-1  accept an application for filing, or the order or judgment of any
   16-2  court resulting in or affecting such an action has no effect on a
   16-3  subsequent determination of whether any land described in the
   16-4  application is vacant.
   16-5        (c)  A decision of the commissioner issued before September
   16-6  1, 1993, that denies a vacancy application or letter of inquiry is
   16-7  not conclusive as to the existence or nonexistence of a vacancy.
   16-8        Sec. 51.188.  RULEMAKING; VENUE OF APPEALS.  (a)  A hearing
   16-9  under this subchapter and further proceedings arising from the
  16-10  hearing shall be conducted in accordance with the Administrative
  16-11  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  16-12  Civil Statutes) and rules adopted by the commissioner consistent
  16-13  with that Act.
  16-14        (b)  Appeal of a final order of the commissioner is to a
  16-15  district court of the county in which the land claimed to be vacant
  16-16  or a part of that land is located.  The district court shall review
  16-17  the commissioner's order under the substantial evidence rule.
  16-18        Sec. 51.189.  COMMISSIONER'S ORDER.  (a)  If it appears to
  16-19  the commissioner that the alleged vacancy is not in conflict with
  16-20  land previously titled, awarded, or sold by the state or its
  16-21  predecessor sovereigns, the commissioner shall enter an order
  16-22  declaring the existence of a vacancy and determining all other
  16-23  issues.
  16-24        (b)  If it appears to the commissioner that the land claimed
  16-25  to be vacant is not vacant, the commissioner shall enter an order
  16-26  denying the application and determining all other issues.
  16-27        (c)  The commissioner shall base the order on the testimony
   17-1  and other competent evidence presented at the hearing, the
   17-2  surveyor's filings and all supplements to those filings, any
   17-3  exceptions or responses to the surveyor's filings and all
   17-4  supplements to those filings, and the publicly available records of
   17-5  the land office and the state archives.  The commissioner and the
   17-6  examiner or examiners who conduct hearings on the application may
   17-7  consult with the land office staff and the surveyor to the extent
   17-8  permitted by the Administrative Procedure and Texas Register Act
   17-9  (Article 6252-13a, Vernon's Texas Civil Statutes).  The record
  17-10  shall include a list of the names and titles of all staff
  17-11  consulted, a list of the files and documents of the land office and
  17-12  state archives examined, and a copy of all memoranda provided to
  17-13  the examiners or commissioner by the land office staff or by the
  17-14  surveyor.
  17-15        (d)  The order shall contain:
  17-16              (1)  findings of fact;
  17-17              (2)  conclusions of law;
  17-18              (3)  a field note description of the land, if any,
  17-19  found to be vacant, sufficient to locate it on the ground, and
  17-20  other elements required by law;
  17-21              (4)  an accurate plat of the land, if any, found to be
  17-22  vacant consistent with the field notes and prepared by the surveyor
  17-23  or a licensed state land surveyor on the land office staff; and
  17-24              (5)  other matters the commissioner considers
  17-25  appropriate.
  17-26        (e)  The commissioner's order may adopt, without restating,
  17-27  the findings of fact and conclusions of law stated in a proposal
   18-1  for decision prepared by the examiner or examiners who conducted
   18-2  the hearings and any opinion or statement contained in that
   18-3  proposal for decision.
   18-4        Sec. 51.190.  DETERMINATION OF BOUNDARIES; REOPENING.
   18-5  (a)  In determining the boundaries and size of a vacancy, the
   18-6  commissioner is not restricted to a description of the land claimed
   18-7  to be vacant that is provided by the applicant, the surveyor, or an
   18-8  interested party.  The commissioner shall adopt the description of
   18-9  a vacancy that best describes the vacancy and is consistent with
  18-10  the information available under this section.
  18-11        (b)  If in determining the boundaries and size of a vacancy
  18-12  it becomes apparent to the commissioner that persons who have not
  18-13  been named as interested persons and who have not been served
  18-14  notice of the proceeding under the application may be affected by
  18-15  the finding that a vacancy exists at the location and with the
  18-16  boundaries believed by the commissioner to conform to the record,
  18-17  the proceeding shall be reopened and the persons affected shall be
  18-18  joined as interested persons and given an opportunity to
  18-19  participate adequately in the proceeding.  This subsection does not
  18-20  require the refiling of an application or the conduct of a new
  18-21  survey by the surveyor.
  18-22        Sec. 51.191.  GOOD-FAITH CLAIMANT STATUS.  (a)  An applicant
  18-23  or interested person who wishes to assert status as a good-faith
  18-24  claimant may file notice of claim of good-faith status at any time
  18-25  before the 20th day preceding the date on which the first hearing
  18-26  begins.  The notice of claim of good-faith status shall state the
  18-27  grounds for the claim and describe the land claimed to be affected
   19-1  by the good-faith status.  The notice shall be filed in the land
   19-2  office and served on all interested persons by certified mail,
   19-3  return receipt requested.
   19-4        (b)  Filing notice of claim of good-faith status is not an
   19-5  admission by the person asserting the claim that a vacancy exists.
   19-6        Sec. 51.192.  ORDER WITHOUT NOTICE AND HEARING.  (a)  An
   19-7  applicant who asserts status as a good-faith claimant may present
   19-8  evidence to the commissioner that:
   19-9              (1)  the good-faith claimant owns all of the land and
  19-10  interests in land completely surrounding the land claimed to be
  19-11  vacant;
  19-12              (2)  there is no subsisting prior application covering
  19-13  the land described in the good-faith claimant's application;
  19-14              (3)  no previous application has been made covering the
  19-15  land described in the good-faith claimant's application; and
  19-16              (4)  the good-faith claimant meets all other
  19-17  requirements of a good-faith claimant.
  19-18        (b)  If the commissioner finds that the evidence presented is
  19-19  accurate, further notice to other persons is not required and, on
  19-20  acceptance for filing by the commissioner of a survey made by a
  19-21  licensed state land surveyor or the county surveyor of the county
  19-22  in which the land claimed to be vacant or a part of that land is
  19-23  located, the commissioner may enter an order declaring the
  19-24  existence of the vacancy and determining the good-faith status of
  19-25  the applicant.
  19-26        (c)  For purposes of this section, land claimed to be vacant
  19-27  and surrounded by lands owned only by the good-faith claimant and
   20-1  the state is considered to be surrounded completely by land owned
   20-2  by the good-faith claimant.
   20-3        (d)  Two or more persons may jointly apply as good-faith
   20-4  claimants under this section if together they meet the requirements
   20-5  of Subsection (a) of this section.
   20-6        (e)  A person who would have been an interested person under
   20-7  an application made under this subchapter by a person other than a
   20-8  good-faith claimant may move to set aside an order entered under
   20-9  this section by filing a written motion with the commissioner not
  20-10  later than the second anniversary of the date of that order.  The
  20-11  person shall serve a true copy of the motion by certified mail,
  20-12  return receipt requested, on the applicant and all persons holding
  20-13  or claiming under the applicant.
  20-14        (f)  The commissioner shall set aside an order issued under
  20-15  this section finding that a vacancy exists if, after notice and
  20-16  hearing, the commissioner finds that the person asserting rights
  20-17  under this section, at the time the order declaring the vacancy was
  20-18  entered, did not:
  20-19              (1)  qualify as a good-faith claimant under this
  20-20  subchapter;
  20-21              (2)  own all of the land and interests in land
  20-22  surrounding the land claimed to be vacant; or
  20-23              (3)  meet another material requirement of this section.
  20-24        (g)  The commissioner on the commissioner's own motion may
  20-25  set aside an order after notice and hearing as required by
  20-26  Subsections (e) and (f) of this section.
  20-27        (h)  If the order is set aside, the commissioner shall reopen
   21-1  the proceeding on the application and conduct the reopened
   21-2  proceeding in the same manner as proceedings on other applications.
   21-3        (i)  The issues in a reopened proceeding are limited to the
   21-4  status of the applicant as a good-faith claimant entitled to rights
   21-5  under this section and the rights of any other person as an
   21-6  applicant or good-faith claimant.
   21-7        (j)  An application of a good-faith claimant who does not own
   21-8  all of the land and interests in land completely surrounding the
   21-9  land claimed to be vacant is treated as an application under other
  21-10  sections of this subchapter.
  21-11        Sec. 51.193.  SALE OR LEASE OF VACANCY.  (a)  When a vacancy
  21-12  has been established by final order, the school land board may sell
  21-13  or lease the vacancy as provided by this subchapter.
  21-14        (b)  The board shall set the sale price and other terms and
  21-15  conditions as in all other sales of other lands dedicated to the
  21-16  permanent school fund.  The sale price may not be less than the
  21-17  fair market value as determined by an appraisal conducted by the
  21-18  land office.
  21-19        (c)  The fee prescribed in Section 32.110(a) of this code
  21-20  applies to all sales and leases made under this subchapter.
  21-21        (d)  The board may allow a credit against the sale price in
  21-22  an amount not to exceed the actual cost of the survey paid by an
  21-23  applicant or good-faith claimant if:
  21-24              (1)  the purchaser is a person exercising a
  21-25  preferential right to purchase under this subchapter;
  21-26              (2)  the board has reserved all mineral and geothermal
  21-27  leasing rights; and
   22-1              (3)  the board finds that the fair market value of the
   22-2  mineral estate is equal to or exceeds 50 percent of the amount of
   22-3  the credit.
   22-4        Sec. 51.194.  MARKET VALUE; MEDIATION; BINDING ARBITRATION.
   22-5  (a)  A person seeking to purchase a vacancy by exercising a right
   22-6  of preferential purchase under this subchapter, by filing a written
   22-7  request with the commissioner, may have the issue of market value
   22-8  submitted to mediation before a trained mediator acceptable to both
   22-9  the board and the person seeking to purchase the vacancy if:
  22-10              (1)  the price set by the board under Section 51.193 of
  22-11  this code exceeds by 15 percent or more the market value estimated
  22-12  in an appraisal made by a real estate appraiser certified in Texas
  22-13  for the person seeking to purchase the vacancy; and
  22-14              (2)  the appraisal was made not more than six months
  22-15  before the date on which the board set the price.
  22-16        (b)  If agreement on price is not reached through mediation
  22-17  on or before the 60th day after the first mediation session, the
  22-18  person seeking to purchase the vacancy, by filing a written request
  22-19  with the commissioner, may have the issue of market value submitted
  22-20  to binding arbitration.
  22-21        (c)  A panel of three real estate appraisers certified in
  22-22  Texas shall conduct the arbitration.  The person seeking to
  22-23  purchase the vacancy shall name one member of the panel, the board
  22-24  shall name one member of the panel, and the two panel members shall
  22-25  name the third member of the panel, who is the panel's presiding
  22-26  officer.  The board or the person seeking to purchase the vacancy
  22-27  may object to and have disqualified the first person named to the
   23-1  panel by the other party.  Appraisers employed by or who contract
   23-2  with the land office are eligible to serve on the arbitration
   23-3  panel.
   23-4        (d)  The arbitration shall be conducted under the rules of
   23-5  the American Arbitration Association or under other rules agreed on
   23-6  by the parties.
   23-7        (e)  The decision of the arbitration panel is not subject to
   23-8  judicial review.
   23-9        (f)  The costs of mediation and arbitration shall be shared
  23-10  equally by the land office and the person seeking to purchase the
  23-11  vacancy.
  23-12        Sec. 51.195.  CONDITIONS OF SALE; MINERAL AWARDS.  (a)  In
  23-13  all sales, the board shall reserve to the permanent school fund all
  23-14  oil, gas, sulphur, and other minerals and geothermal resources and
  23-15  shall determine the manner in which those minerals and geothermal
  23-16  resources are to be leased.
  23-17        (b)  Before the sale of a vacancy, the land office shall
  23-18  prepare and present to the board a study of the mineral prospects
  23-19  and value of the vacancy, taking into consideration the size and
  23-20  configuration of the vacancy, its location with respect to other
  23-21  surrounding and nearby tracts, the proximity of mineral production,
  23-22  and the likelihood of future mineral leasing and development.  The
  23-23  study shall include a recommendation as to the method most
  23-24  advantageous to the state by which the vacancy could be leased.
  23-25        (c)  The board shall review the study and land office
  23-26  recommendations and shall determine whether:
  23-27              (1)  the state shall retain all leasing rights and the
   24-1  vacancy shall be leased as provided in Subchapter B, Chapter 52,
   24-2  and Subchapters B and E, Chapter 53, of this code; or
   24-3              (2)  the owner of the soil shall be designated to
   24-4  execute leases as the agent of the state subject to the rights,
   24-5  obligations, and liabilities of Subchapter F, Chapter 52, and
   24-6  Subchapter C, Chapter 53, of this code.
   24-7        (d)  If the board determines that the owner of the soil shall
   24-8  act as agent under Subsection (c)(2) of this section, the board
   24-9  shall establish the division of bonus, rental, and royalty between
  24-10  the permanent school fund and the owner of the soil.  The portion
  24-11  to be paid to the owner of the soil may not be less than 20 percent
  24-12  or more than 50 percent.  The board may establish different
  24-13  portions to be paid to the owner of the soil for the lease of
  24-14  different substances.
  24-15        (e)  If the board provides for lease by the owner of the soil
  24-16  under Subsection (c)(2) of this section, the original purchaser is
  24-17  a good-faith claimant, and the vacancy was established under an
  24-18  application made by a person other than a good-faith claimant, the
  24-19  board shall award the applicant a perpetual nonparticipating
  24-20  royalty of not less than 1/32 or more than 1/16 of the value of all
  24-21  oil, gas, and sulphur produced and a perpetual nonparticipating
  24-22  royalty of not less than one percent or more than two percent of
  24-23  the value of all geothermal resources and all other minerals
  24-24  produced.
  24-25        (f)  If the board determines that the state shall retain all
  24-26  leasing rights as provided in Subsection (c)(1) of this section,
  24-27  the board shall award:
   25-1              (1)  to an applicant other than a good-faith claimant,
   25-2  a perpetual nonparticipating royalty of 1/32 of the value of oil
   25-3  and gas and one percent of the value of all geothermal resources
   25-4  and all other minerals produced; and
   25-5              (2)  to a good-faith claimant purchasing the vacancy, a
   25-6  nonparticipating royalty of 1/32 of the value of oil and gas and
   25-7  one percent of the value of all geothermal resources and all other
   25-8  minerals produced.
   25-9        (g)  If a preferential right to obtain the first mineral
  25-10  lease on a vacancy is exercised by any person, the state's royalty
  25-11  under the lease shall be reduced by 25 percent for a period of five
  25-12  years after the date of first production under the first lease if
  25-13  sales of production from or attributable to the lease are commenced
  25-14  during the primary term of the lease.
  25-15        Sec. 51.196.  PREFERENTIAL RIGHT OF GOOD-FAITH CLAIMANT.
  25-16  (a)  A good-faith claimant has a preferential right to purchase or
  25-17  lease the portion of a vacancy subject to the good-faith claim.
  25-18        (b)  A good-faith claimant may exercise the preferential
  25-19  right by filing a notice of intent to purchase or lease, on a form
  25-20  prescribed by the board, not later than the 90th day after the date
  25-21  the order establishing the vacancy becomes final.  The good-faith
  25-22  claimant shall describe in the notice the portion of the vacancy
  25-23  the good-faith claimant seeks to purchase or lease.  The good-faith
  25-24  claimant shall mail a copy of the notice to the applicant and to
  25-25  all other interested persons who have asserted status as good-faith
  25-26  claimants.
  25-27        (c)  All preferential rights held by a good-faith claimant
   26-1  expire if the  good-faith claimant does not file the notice of
   26-2  intent within the time prescribed by Subsection (b) of this section
   26-3  or does not complete the purchase or lease within 60 days after the
   26-4  board sets the terms of the purchase or lease.  For good cause
   26-5  shown, the board may extend the time to complete the purchase or
   26-6  lease by a period not to exceed 90 days.
   26-7        (d)  A good-faith claimant exercising a preferential right
   26-8  shall repay to the applicant the applicant's reasonable expenses
   26-9  incurred in determining the existence of a vacancy, excluding
  26-10  filing and attorney fees, not later than the date on which the sale
  26-11  or purchase by the good-faith claimant is completed.  Failure to
  26-12  pay the expenses cancels the preferential right of the good-faith
  26-13  claimant.
  26-14        Sec. 51.197.  PREFERENTIAL RIGHT OF APPLICANT OTHER THAN
  26-15  GOOD-FAITH CLAIMANT.  (a)  On the expiration of the preferential
  26-16  right of a good-faith claimant to purchase or lease or if there is
  26-17  no good-faith claimant, an applicant who is not a good-faith
  26-18  claimant has a preferential right to purchase or lease all or any
  26-19  portion of the vacancy.
  26-20        (b)  An applicant may exercise the preferential right by
  26-21  filing a notice of intent to purchase or lease, on a form
  26-22  prescribed by the board, not later than the 90th day after the date
  26-23  on which the rights of the good-faith claimant expire.  The
  26-24  applicant shall describe in the notice the portion of the vacancy
  26-25  the applicant seeks to purchase or lease.  The applicant shall mail
  26-26  a copy of the notice to all other interested persons asserting
  26-27  status as good-faith claimants.
   27-1        (c)  All preferential rights held by an applicant expire if
   27-2  the applicant does not file the notice of intent within the time
   27-3  prescribed by Subsection (b) of this section or does not complete
   27-4  the purchase or lease within 60 days after the date on which the
   27-5  board sets the terms of the purchase or lease.  For good cause
   27-6  shown, the board may extend the time to complete the purchase or
   27-7  lease by a period not to exceed 90 days.
   27-8        Sec. 51.198.  RIGHTS ASSIGNABLE.  An applicant or good-faith
   27-9  claimant may assign all rights in a vacancy or land claimed to be
  27-10  vacant.  The assignment must be in writing.  The assignor shall
  27-11  record the assignment in the real property records of the county or
  27-12  counties in which the vacancy or land claimed to be vacant is
  27-13  located and file a certified copy of the recorded assignment in the
  27-14  land office.
  27-15        Sec. 51.199.  LEASE TERMS UNDER PREFERENTIAL RIGHTS.  The
  27-16  board shall prescribe terms for preferential purchases or leases
  27-17  consistent with this subchapter.  The board may not grant a
  27-18  preferential lease with a royalty of less than 1/8 of the value of
  27-19  all oil, gas, and sulphur produced or less than five percent of the
  27-20  value of all geothermal resources and all other minerals produced.
  27-21        Sec. 51.200.  EFFECT OF PRIOR CONVEYANCES.  (a)  A mineral
  27-22  lease, surface lease, deed, or any other conveyance of any interest
  27-23  in land executed by a good-faith claimant before the date of
  27-24  completion of a sale or lease under this subchapter does not give
  27-25  the grantee under that conveyance any interest in or to the vacancy
  27-26  or its minerals.
  27-27        (b)  A title to land or an interest in land acquired from the
   28-1  state under a preferential right does not pass as after-acquired
   28-2  title under a covenant of general warranty, description, or other
   28-3  provision contained in a conveyance executed before the date of
   28-4  completion of a sale or lease under this subchapter.
   28-5        Sec. 51.201.  RULEMAKING AUTHORITY.  (a)  The commissioner
   28-6  may adopt rules consistent with this subchapter relating to
   28-7  applications to purchase or lease vacancies and the determination
   28-8  of the existence of vacancies.
   28-9        (b)  The board may adopt rules consistent with this
  28-10  subchapter relating to the sale and lease of vacancies.
  28-11        Sec. 51.202.  CONFLICT WITH OTHER CODE PROVISIONS.  To the
  28-12  extent that any provision of this subchapter pertaining to
  28-13  vacancies or the sale or lease of vacancies conflicts with any
  28-14  other provision of this code, this subchapter controls.
  28-15        <Sec. 51.171.  ><Sale and Lease of Vacant Land><.  Vacant and
  28-16  unsurveyed public school land except riverbeds, channels, islands,
  28-17  lakes, bays, and other areas in tidewater limits shall be sold and
  28-18  leased under the provisions of this subchapter.>
  28-19        <Sec. 51.172.  ><Definitions><.  In this subchapter:>
  28-20              <(1)  "Good-faith claimant" and "claimant" mean any
  28-21  person:>
  28-22                    <(A)  who occupies or uses or has previously
  28-23  occupied or used or whose predecessors in interest have occupied or
  28-24  used a vacancy for purposes other than exploring for or removing
  28-25  oil, gas, sulphur, or other minerals from the vacancy; and>
  28-26                    <(B)  who has himself or whose predecessors in
  28-27  interest had the vacancy enclosed or within definite recognized
   29-1  boundaries and in possession for a period of 10 years with a
   29-2  good-faith belief that the vacancy was included inside the
   29-3  boundaries of the survey or surveys that were previously titled,
   29-4  awarded, or sold under circumstances that would have vested title
   29-5  in the vacancy if it were actually located within the boundaries of
   29-6  the survey or surveys whose boundaries are recognized boundaries in
   29-7  the community.>
   29-8              <(2)  "Vacancy" means an area of unsurveyed public
   29-9  school land that:>
  29-10                    <(A)  is not in conflict on the ground with land
  29-11  previously titled, awarded, or sold;>
  29-12                    <(B)  has not been listed on the records of the
  29-13  land office as public school land; and>
  29-14                    <(C)  was, on the date of filing, neither subject
  29-15  to an earlier subsisting application to purchase or lease by a
  29-16  discoverer or claimant nor involved in pending litigation brought
  29-17  by the state to recover the land.>
  29-18              <(3)  "Applicant" means any person, other than a
  29-19  good-faith claimant, who discovers and files an application to
  29-20  purchase or lease a vacancy.>
  29-21        <Sec. 51.174.  ><Purchase of Vacancy by Adjoining Landowner><.
  29-22  If the owner of the land adjoining an alleged vacancy files an
  29-23  application to purchase the vacancy and no application to purchase
  29-24  or lease the vacancy has been previously filed, the owner of the
  29-25  adjoining land, who otherwise qualifies as a good-faith claimant,
  29-26  shall be considered a good-faith claimant regardless of the length
  29-27  of time he has owned the adjoining land or has enclosed the vacancy
   30-1  or has had it within definite recognized boundaries and in
   30-2  possession with the belief that the vacancy was included within his
   30-3  survey.>
   30-4        <Sec. 51.175.  ><Application to Purchase or Lease a Vacancy><.
   30-5  (a)  An applicant who claims that a vacancy exists and who desires
   30-6  to purchase or lease the vacancy shall file with the county
   30-7  surveyor in the county in which any part of the vacancy is located
   30-8  a sworn written application in duplicate to purchase or lease the
   30-9  vacancy.>
  30-10        <(b)  The application shall:>
  30-11              <(1)  describe the land that is claimed to be vacant;>
  30-12              <(2)  state the desire of the applicant to purchase or
  30-13  lease the land under the provisions of this chapter;>
  30-14              <(3)  give the names and addresses of any owners or
  30-15  claimants of land or any interest in land or of leases on,
  30-16  adjoining, overlapping, or including the land claimed to be vacant
  30-17  as far as can be determined from the records of the land office and
  30-18  the county clerk's office in the county in which the land is
  30-19  located and the tax records of the county in which the land is
  30-20  located;>
  30-21              <(4)  give the names and addresses of any persons who,
  30-22  from facts known to the applicant, assert any right to the alleged
  30-23  vacant land; and>
  30-24              <(5)  state that the applicant knows of no other
  30-25  claimants than those listed.>
  30-26        <Sec. 51.176.  ><Filing Fee><.  At the time the application is
  30-27  filed, the applicant shall pay to the county surveyor a filing fee
   31-1  set by the board of not less than $5.>
   31-2        <Sec. 51.177.  ><Filing Application With County><.  (a)  The
   31-3  county surveyor shall mark the exact date and hour of filing on the
   31-4  original and duplicate copy of each application and shall return
   31-5  one copy of the application to the applicant and shall record the
   31-6  other copy in a book kept for that purpose.>
   31-7        <(b)  If the county does not have a county surveyor, the
   31-8  preliminary filing of the application shall be with the county
   31-9  clerk.  The county clerk shall record the application in a book
  31-10  kept for that purpose and not in the deed records.>
  31-11        <Sec. 51.178.  ><Filing Application With Commissioner><.
  31-12  (a)  Within 10 days after the application is filed with the county
  31-13  surveyor, the copy of the application that is returned to the
  31-14  applicant shall be filed with the commissioner.>
  31-15        <(b)  The commissioner shall mark the date of filing on the
  31-16  application.>
  31-17        <(c)  The applicant shall pay to the commissioner a filing
  31-18  fee set by the commissioner in an amount not less than $100.>
  31-19        <(d)  Failure to file the application with the commissioner
  31-20  in the time provided by this section and to pay the filing fee
  31-21  constitutes a waiver of all rights under the application.>
  31-22        <(e)  As between applicants, priority dates from the time of
  31-23  filing the application with the county surveyor.>
  31-24        <Sec. 51.179.  ><Deposit><.  (a)  The commissioner shall notify
  31-25  the applicant by letter of the estimated cost of proceeding under
  31-26  the application, and within 30 days after the date of the
  31-27  commissioner's letter, the applicant shall make a deposit with the
   32-1  commissioner to pay the cost of the work that may be necessary to
   32-2  comply with the request contained in the application.>
   32-3        <(b)  On failure to make the deposit required under this
   32-4  section, all rights under the application are lost.>
   32-5        <Sec. 51.180.  ><Insufficient Deposit><.  (a)  If the deposit is
   32-6  insufficient, the applicant shall be requested by letter to make a
   32-7  further deposit of an amount determined by the commissioner.>
   32-8        <(b)  If the further deposit is not made within 30 days after
   32-9  the date of the letter, work shall be discontinued and the
  32-10  application canceled with the cancellation endorsed on the
  32-11  application.>
  32-12        <(c)  On cancellation, the right to purchase or lease the
  32-13  vacancy under the application is lost.>
  32-14        <Sec. 51.181.  ><Appeal of Amount of Deposit><.  (a)  The
  32-15  applicant is entitled to appeal the estimated cost determined by
  32-16  the commissioner to a district court in Travis County by giving
  32-17  written notice to the commissioner within 15 days after receiving
  32-18  the estimated cost from the commissioner as provided in Sections
  32-19  51.179 through 51.180 of this code.>
  32-20        <(b)  The applicant has 15 days after the district court
  32-21  enters its decision in which to pay the amount ordered by the
  32-22  court's decision.>
  32-23        <Sec. 51.182.  ><Deposits as Trust Fund><.  Deposits provided
  32-24  under Sections 51.179 through 51.180 of this code shall be a
  32-25  special trust fund to be used only for the purpose authorized by
  32-26  this subchapter.>
  32-27        <Sec. 51.183.  ><Statement and Refund of Remaining Deposit><.  As
   33-1  soon as the total expense properly charged against the deposit is
   33-2  determined, the commissioner shall render a complete statement to
   33-3  the applicant together with any balance remaining from the deposit.>
   33-4        <Sec. 51.184.  ><Notice of Intention to Survey><.  (a)  After the
   33-5  application is filed with the commissioner and the deposit is made,
   33-6  the commissioner shall mail a notice of intention to survey to all
   33-7  persons named as interested persons in the application at the
   33-8  addresses provided in the application and to the attorney general.>
   33-9        <(b)  The notices shall be deposited in the post office in
  33-10  Austin at least 10 days before the date set for the beginning of
  33-11  the survey.>
  33-12        <Sec. 51.185.  ><Appointment of Surveyor><.  (a)  The
  33-13  commissioner shall appoint a surveyor to make the survey in
  33-14  accordance with the notice of intention to survey.>
  33-15        <(b)  The surveyor shall be a surveyor licensed by the state
  33-16  or the county surveyor of the county in which the vacancy or part
  33-17  of the vacancy is located.>
  33-18        <(c)  The fees and expenses paid for the survey shall be the
  33-19  same as provided by law, and if the fees and expenses are not
  33-20  provided by law, the commissioner and surveyor shall make an
  33-21  agreement as to fees and expenses that shall not be more than an
  33-22  amount that is reasonable for the work performed.>
  33-23        <(d)  The fees and expenses shall be paid by the applicant.>
  33-24        <Sec. 51.186.  ><Survey Report><.  (a)  Except as provided in
  33-25  Subsection (b) of this section, a written report of the survey,
  33-26  together with field notes describing the land and the lines and
  33-27  corners surveyed and a plat showing the results of the survey,
   34-1  shall be filed in the land office within 120 days from the filing
   34-2  of the application.>
   34-3        <(b)  The commissioner may extend the time for filing the
   34-4  survey if good cause is shown.  The cause for extension of time
   34-5  shall be stated in writing and filed as part of the record of the
   34-6  proceedings.  An extension of time may not be more than 60 days.>
   34-7        <(c)  The survey report shall give the names and post-office
   34-8  addresses of all persons who have possession of the land described
   34-9  in the application and of all persons found by the surveyor who
  34-10  have or claim any interest in the land.>
  34-11        <Sec. 51.187.  ><Personal Survey><.  Any interested party at his
  34-12  own expense may have any surveying done that he considers
  34-13  desirable.>
  34-14        <Sec. 51.188.  ><Hearing and Notice><.  (a)  Within 60 days after
  34-15  the surveyor makes his report, a hearing may be held before the
  34-16  commissioner to determine whether or not there is a vacancy.>
  34-17        <(b)  The date for the hearing shall be provided in the
  34-18  notice that the commissioner shall give to all persons thought to
  34-19  be interested parties and to all persons shown by the record of the
  34-20  proceeding to be interested parties, including the attorney
  34-21  general.>
  34-22        <(c)  The notice of the hearing shall be deposited at the
  34-23  post office in Austin at least 10 days before the date set for the
  34-24  hearing.>
  34-25        <(d)  At the hearing, the state and each interested party,
  34-26  whether or not he received notice, is entitled to be heard.>
  34-27        <(e)  The hearing shall be conducted in accordance with the
   35-1  provisions of the Administrative Procedure and Texas Register Act
   35-2  (Article 6252-13a, Vernon's Texas Civil Statutes).>
   35-3        <Sec. 51.189.  ><Determination of Vacancy by Commissioner><.
   35-4  (a)  If it appears to the commissioner that the alleged vacancy is
   35-5  not in conflict with land previously titled, awarded, or sold by
   35-6  the state, he shall give prompt notice of this finding to the
   35-7  applicant and to all persons who were previously identified as
   35-8  interested parties.>
   35-9        <(b)  After the notice is given under Subsection (a) of this
  35-10  section, and subject to the preferential right of a good-faith
  35-11  claimant, the applicant is entitled for 120 days to purchase or
  35-12  lease the portion of the land that is determined to be vacant at a
  35-13  price set by the board as provided in this code and with the same
  35-14  royalty reservation as provided in Section 51.201 of this code.>
  35-15        <(c)  No award may be made by the commissioner unless a
  35-16  hearing is held, and no presumption may obtain in a suit involving
  35-17  the existence of a vacancy as a result of the action of the
  35-18  commissioner in this respect.>
  35-19        <Sec. 51.190.  ><Purchase or Lease by Applicant><.  (a)  If there
  35-20  is no good-faith claimant or if no good-faith claimant exercises
  35-21  his preferential right within the time allowed, the applicant is
  35-22  entitled to purchase or lease, according to his application, the
  35-23  vacancy for which he made application and which is found to exist.>
  35-24        <(b)  Consideration shall be determined by the board as
  35-25  provided in this subchapter, but without consideration of potential
  35-26  mineral value.>
  35-27        <Sec. 51.191.  ><Suit to Recover Land><.  A good-faith claimant
   36-1  of a vacant or unsurveyed tract of land has 30 days after the sale
   36-2  or lease of the land to the applicant to institute suit to set
   36-3  aside the sale or lease of the land.  If the suit is not instituted
   36-4  within the 30-day period by the good-faith claimant, he loses all
   36-5  preferential rights to purchase or lease the land.>
   36-6        <Sec. 51.192.  ><Denial of Vacancy by Commissioner><.  (a)  If
   36-7  the commissioner decides that the area alleged to be vacant is not
   36-8  vacant, he shall endorse this decision on the application and file
   36-9  it with his finding.>
  36-10        <(b)  The commissioner shall promptly notify the applicant of
  36-11  his decision by registered mail and shall file all reports and
  36-12  papers received in connection with the application.>
  36-13        <(c)  After the commissioner takes all action provided under
  36-14  Subsections (a) and (b) of this section, he shall take no further
  36-15  action with respect to the application unless the existence of the
  36-16  alleged vacancy is determined by a court of competent jurisdiction.>
  36-17        <(d)  Within 90 days after the commissioner's decision is
  36-18  mailed, unless the applicant files suit in a district court in a
  36-19  county in which part of the alleged vacancy is located to litigate
  36-20  the question of the existence of a vacancy, the applicant's
  36-21  application and all preference rights acquired to purchase or lease
  36-22  the alleged vacancy become null and void.>
  36-23        <Sec. 51.193.  ><Preferential Right of Good-Faith Claimant><.
  36-24  (a)  A good-faith claimant who ascertains that a vacancy exists or
  36-25  that a claimed vacancy may exist or who has been notified by the
  36-26  commissioner that a vacancy has been found to exist on land claimed
  36-27  by him shall have a preferential right to purchase or lease the
   37-1  vacancy at any time until 90 days after a decision of the
   37-2  commissioner declaring the existence of a vacancy.>
   37-3        <(b)  The good-faith claimant may purchase or lease the
   37-4  vacancy by submitting a written application to the commissioner for
   37-5  the purchase or lease of the vacancy and by furnishing to the
   37-6  commissioner satisfactory proof that he is a good-faith claimant.>
   37-7        <(c)  The good-faith claimant is entitled to purchase or
   37-8  lease the portion of the land that is vacant at the price set by
   37-9  the board subject to the royalty reservations provided in this
  37-10  subchapter which are effective on the date the application is
  37-11  filed.>
  37-12        <Sec. 51.194.  ><Term of Preferential Right><.  A good-faith
  37-13  claimant has a preferential right to purchase the land alleged or
  37-14  adjudicated to be vacant until 90 days after the final judicial
  37-15  determination of the existence of the vacancy.>
  37-16        <Sec. 51.195.  ><Effect of Good-Faith Claimant's Application><.
  37-17  The application of a good-faith claimant may not be used or
  37-18  considered as an admission on his part that a vacancy exists.>
  37-19        <Sec. 51.196.  ><Procedure for Purchase or Lease by Good-Faith
  37-20  Claimant><.  (a)  On the date a good-faith claimant's application is
  37-21  filed, if there is no valid and subsisting application previously
  37-22  filed by an applicant covering the alleged vacancy, the application
  37-23  of the good-faith claimant shall be filed and shall be accompanied
  37-24  by:>
  37-25              <(1)  a filing fee set by the commissioner in an amount
  37-26  not less than $1;>
  37-27              <(2)  a written report of a surveyor licensed by the
   38-1  state or by the county surveyor of any county in which all or part
   38-2  of the alleged vacancy is located;>
   38-3              <(3)  field notes describing the land and the lines and
   38-4  corners surveyed;>
   38-5              <(4)  a plat showing the results of the survey; and>
   38-6              <(5)  any proof that will show to the satisfaction of
   38-7  the commissioner that the applicant is a good-faith claimant.>
   38-8        <(b)  The good-faith claimant may file his application to
   38-9  purchase or lease and within 120 days from the date of filing the
  38-10  application with the commissioner have a survey made of the alleged
  38-11  vacancy and file the report, field notes, and plat in the land
  38-12  office together with proof that he is a good-faith claimant.>
  38-13        <(c)  If it appears to the commissioner that the alleged
  38-14  vacancy is not in conflict with land previously titled, awarded, or
  38-15  sold by the state, the commissioner shall grant the application
  38-16  under the provisions of this subchapter.  Before the application is
  38-17  granted, the commissioner may hold a hearing at which interested
  38-18  persons may appear.>
  38-19        <Sec. 51.197.  ><Failure to Exercise Preferential Right Within
  38-20  Certain Time><.  (a)  If the good-faith claimant does not exercise
  38-21  his preferential right to purchase within 90 days after a decision
  38-22  of the commissioner under the provisions of this subchapter, the
  38-23  applicant shall be awarded an oil, gas, and mineral lease on not
  38-24  more than seven-eighths of the minerals.>
  38-25        <(b)  The consideration for the lease shall not be less than
  38-26  $1 an acre, and the lease shall be for a primary term set by the
  38-27  board of not more than five years.>
   39-1        <(c)  The lease shall be subject to other consideration and
   39-2  terms required by the board and the preferential right of a
   39-3  good-faith claimant until 90 days after final judicial
   39-4  determination under Section 51.194 of this code.>
   39-5        <Sec. 51.198.  ><Repayment of Applicant's Expenses><.  Within 90
   39-6  days after the commissioner declares the vacancy to exist, the
   39-7  good-faith claimant shall repay to the applicant the expenses
   39-8  incurred in determining the existence of a vacancy, except filing
   39-9  fees, as provided in this subchapter or the good-faith claimant
  39-10  will lose all preferential rights to purchase or lease the land.>
  39-11        <Sec. 51.199.  ><Judicial Determination of Good-Faith Claimant><.
  39-12  If the commissioner fails to determine whether or not there is a
  39-13  good-faith claimant or if his decision is questioned by an
  39-14  applicant or by a person asserting to be a good-faith claimant, the
  39-15  issue shall be determined in any suit brought under this subchapter
  39-16  to determine the existence of the alleged vacancy.>
  39-17        <Sec. 51.200.  ><Rights of Holders of Title and Holders of
  39-18  Interests in Title of a Claimant><.  (a)  If all owners holding title
  39-19  under the claimant or an interest in the title under which the
  39-20  claimant claims to be a good-faith claimant accept the provisions
  39-21  of this section and contribute their proportionate part of the
  39-22  royalty reserved to the state and the royalty awarded to the
  39-23  applicant, the purchase by the good-faith claimant under the
  39-24  preferential right inures distributively to their benefit.>
  39-25        <(b)  The royalty reservations shall be deducted
  39-26  distributively and proportionately from the mineral interest of
  39-27  each owner including mineral leases if the area is under a mineral
   40-1  lease.>
   40-2        <(c)  As a condition of this subchapter, the good-faith
   40-3  claimant receiving the patent or award or for whose benefit a
   40-4  patent or award is received shall recognize the proportionate
   40-5  interests of other owners who benefit by the award of the
   40-6  preferential right.>
   40-7        <(d)  The consideration for the purchase shall be determined
   40-8  by the board without considering the potential value of minerals or
   40-9  any improvements located on the vacancy but shall not be less than
  40-10  $1 an acre.  The state retains the right to recover from the party
  40-11  or parties liable the market value when produced of all oil, gas,
  40-12  sulphur, or other minerals that may have been produced from the
  40-13  area before the effective date of the patent or award less an
  40-14  offset to the operator for the actual cost of development and
  40-15  production.>
  40-16        <(e)  No mineral lease executed by a good-faith claimant
  40-17  before filing the vacancy claim may give the lessee any interest in
  40-18  or to the vacancy.>
  40-19        <(f)  No title to land or to a mineral interest in land
  40-20  acquired from the state under a preferential right may be held to
  40-21  pass as after-acquired title because of any covenant of general
  40-22  warranty, description, or other provision contained in any
  40-23  conveyance executed before the date of award under the preferential
  40-24  right.>
  40-25        <Sec. 51.201.  ><Reservation of Minerals><.  (a)  If a good-faith
  40-26  claimant purchases a vacancy located within five miles of a well
  40-27  producing oil, gas, or other minerals in commercial quantities, not
   41-1  less than a free royalty of one-eighth of all oil, gas, sulphur,
   41-2  and other minerals shall be reserved to the state.>
   41-3        <(b)  If a vacancy that is not covered by Subsection (a) of
   41-4  this section is sold, not less than a free royalty of one-sixteenth
   41-5  of all oil and gas production and one-eighth of all sulphur and
   41-6  other minerals shall be reserved to the state.>
   41-7        <(c)  If a good-faith claimant fails to exercise his
   41-8  preferential right to purchase a vacancy within 90 days after the
   41-9  commissioner determines the existence of the vacancy, the mineral
  41-10  interest reserved by the state shall be not less than a free
  41-11  royalty of one-eighth of the oil and gas and not less than a free
  41-12  royalty of one-sixth of the sulphur and other minerals.>
  41-13        <(d)  The state shall reserve not less than a free royalty of
  41-14  one-eighth of all oil, gas, sulphur, and other minerals on
  41-15  vacancies that are leased by the state as determined by the board.>
  41-16        <(e)  An oil, gas, or other mineral lease on land in which
  41-17  the state reserves a free royalty interest is not effective until a
  41-18  certified copy of the recorded lease is filed in the General Land
  41-19  Office.>
  41-20        <Sec. 51.202.  ><Mineral Reservations Under Sale Made to
  41-21  Claimant After 90-Day Deadline><.  If a good-faith claimant does not
  41-22  exercise his preferential right to purchase until after 90 days
  41-23  after the decision of the commissioner determining the existence of
  41-24  a vacancy, the sale made to the claimant shall be subject to a
  41-25  reservation to the state of not less than a free royalty of
  41-26  one-eighth of all oil, gas, sulphur, and other minerals and subject
  41-27  to any lease made by the state to the applicant.>
   42-1        <Sec. 51.203.  ><Royalty for Applicant><.  If there is a valid
   42-2  subsisting application previously filed by an applicant on the date
   42-3  that the good-faith claimant files his application to purchase
   42-4  under a preferential right, and if the good-faith claimant
   42-5  exercises his preferential right to purchase within 90 days after
   42-6  the commissioner's decision under this subchapter, a free royalty
   42-7  of one-sixteenth of all oil, gas, sulphur, and other minerals that
   42-8  may be produced from the land shall be added to the royalty
   42-9  interest reserved to the state and shall be awarded by the state to
  42-10  the applicant.  The free royalty shall be deducted proportionately
  42-11  from the good-faith claimant's award.>
  42-12        <Sec. 51.205.  ><Appeal><.  (a)  A person who is aggrieved by any
  42-13  action taken by the commissioner under the provisions of this
  42-14  subchapter or with reference to any application to purchase or
  42-15  lease a vacancy may institute suit in the district court of any
  42-16  county in which part of the land is located to try the issues of
  42-17  boundary, title, ownership of any alleged vacancy involved, and
  42-18  preferential rights of the person.>
  42-19        <(b)  Within 30 days after the suit is filed, the plaintiff
  42-20  shall have a certified copy of the original petition served on the
  42-21  attorney general and the commissioner by the sheriff or a constable
  42-22  of Travis County and shall have the officer's return filed with the
  42-23  papers in the suit.>
  42-24        <(c)  Whether the attorney general answers or intervenes in
  42-25  the suit or institutes a suit, the venue of all suits following the
  42-26  filing of the application shall be in the county in which the land
  42-27  or part of the land is located.>
   43-1        <(d)  If the litigation is prosecuted to a final judgment,
   43-2  the judgment is binding on the state.>
   43-3        <(e)  The attorney general must intervene on behalf of the
   43-4  state in suits brought under this section.>
   43-5        <(f)  The suit must be filed in accordance with the
   43-6  provisions of the Administrative Procedure and Texas Register Act
   43-7  (Article 6252-13a, Vernon's Texas Civil Statutes) relating to
   43-8  appeals from agency decisions.>
   43-9        SECTION 2.  Section 118.161, Local Government Code, is
  43-10  amended to read as follows:
  43-11        Sec. 118.161.  Fee Schedule.  A county surveyor shall collect
  43-12  the following fees:
  43-13              (1)  for recording the field notes and plat of a survey
  43-14  for a tract of land, providing copies of field notes, plats, or
  43-15  other papers or records, and certifying any copies, the same amount
  43-16  collected by the county clerk of the county as a filing fee;
  43-17              (2)  for surveying a tract of land or designating a
  43-18  homestead:
  43-19                    (A)  the actual expenses incurred, including all
  43-20  expenses of making the survey, preparing a survey report, field
  43-21  notes, plat, and other documents required by law, and filing those
  43-22  documents in the records of the county surveyor or the General Land
  43-23  Office; and
  43-24                    (B)  any fees for surveying services agreed on by
  43-25  the county surveyor and the person seeking the services; and
  43-26              (3)  for filing an application to purchase or lease a
  43-27  vacancy or for surveying a vacancy, the amounts provided by
   44-1  Subchapter E, Chapter 51, Natural Resources Code.  <Inspecting and
   44-2  recording the field notes and plat of a survey for any tract of
   44-3  land:>
   44-4                    <(A)  less than one-third of a league ..... $1.00>
   44-5                    <(B)  one-third of a league ............... $2.00>
   44-6                    <(C)  more than one-third of a league ..... $3.00>
   44-7              <(2)  Recording surveys and plats required by law to be
   44-8                      placed on the map of a new county, for each 100
   44-9                      words ................................... $0.20>
  44-10              <(3)  Examination of papers and records in his office
  44-11                      at the request of any person ............ $0.25>
  44-12              <(4)  Copies of all field notes and plats, or other
  44-13                      papers or records in the office, for each 100
  44-14                      words, including certificate ............ $0.20>
  44-15              <(5)  Surveying of any tract of land, including all
  44-16                      expenses in making the survey, and returning
  44-17                      the plat and field notes of the survey:>
  44-18                    <(A)  for each  English  lineal  mile  actually
  44-19                            run ............................... $3.00>
  44-20                    <(B)  for less  than  one  English lineal mile
  44-21                            run ............................... $2.50>
  44-22              <(6)  Services in designating a homestead, including
  44-23                      pay for  chain carriers, for  each  day's
  44-24                      service ................................ $5.00>
  44-25        SECTION 3.  Subsection (b), Section 72.006, Local Government
  44-26  Code, is amended to read as follows:
  44-27        (b)  A surveyor appointed under this chapter is entitled to
   45-1  receive the actual expenses incurred in making the survey and any
   45-2  fees for surveying services agreed on by the surveyor and the
   45-3  counties <$3 for each mile surveyed>.
   45-4        SECTION 4.  Subsection (a), Section 21.078, Natural Resources
   45-5  Code, is amended to read as follows:
   45-6        (a)  The plane coordinate values for a point on the earth's
   45-7  surface, to be used in expressing the position or location of the
   45-8  point in the appropriate zone, of either system, shall consist of
   45-9  two distances, expressed in U.S. Survey Feet and decimals of a foot
  45-10  or varas or tenths of a vara when using the Texas Coordinate System
  45-11  of 1927 and expressed in meters and decimals of a meter, in U.S.
  45-12  Survey Feet or decimals of a foot, or in varas or tenths of a vara
  45-13  when using the Texas Coordinate System of 1983.
  45-14        SECTION 5.  (a)  The change in law made by this Act applies
  45-15  only to an application to purchase or lease a vacancy under
  45-16  Subchapter E, Chapter 51, Natural Resources Code, that is filed
  45-17  with a county surveyor or county clerk on or after the effective
  45-18  date of this Act.
  45-19        (b)  An application filed before that date is governed by the
  45-20  law in effect on the date the application is filed, and the former
  45-21  law is continued in effect for that purpose.
  45-22        SECTION 6.  This Act takes effect September 1, 1993.
  45-23        SECTION 7.  The importance of this legislation and the
  45-24  crowded condition of the calendars in both houses create an
  45-25  emergency and an imperative public necessity that the
  45-26  constitutional rule requiring bills to be read on three several
  45-27  days in each house be suspended, and this rule is hereby suspended.